The Cash Party Is Almost Over for Unicorns Like Uber
Winners and losers have been determined by who can raise the most money, not necessarily those with the best product or service.
Flush with cash but unprofitable.
Photographer: Johannes Eisele/AFP/Getty Images
Uber Technologies Inc.’s coming IPO is a moment to reflect on the oodles of investment cash that have resulted in a herd of “unicorns,” the awful but convenient shorthand for tech companies that reach valuations of at least $1 billion while they’re private.
There are now more than 340 of them, according to CB Insights, compared with the 18 unicorns identified in 2013 by investor Aileen Lee when she coined the term. (Her list had 39 companies, but many of them had already gone public or been acquired. Uber was on Lee’s list even back then.)